The recession of 2008-2009 was preceded by
A)a sharp decline in housing prices.
B)large losses among financial institutions that owned mortgage-backed securities.
C)rises in mortgage defaults and home foreclosures.
D)all of the above

Question

Quizplus · Accepted Answer

The recession of 2008-2009 was preceded by all of the above factors, which were interrelated and contributed to the overall economic downturn. The decline in housing prices led to an increase in mortgage defaults and foreclosures, which in turn caused large losses among financial institutions that owned mortgage-backed securities. These losses further deepened the recession and created a financial crisis that affected the global economy.

The Recession of 2008-2009 Was Preceded by